A federal bankruptcy court delivered good news for the area Monday by clearing the way for a longtime food distributor to continue operating.

Federal Bankruptcy Court Judge Bernard Markovitz has signed a reorganizational plan that will keep the components of W.S. Lee & Sons Inc. operating under new owners and a new company, Lee Food Service Inc.

Considering the possible outcomes, this is a big win because it keeps employees on the payroll, allows unsecured creditors to receive immediate payment of their bills and helps maintain the local tax base.

It’s been a rough 13 months for the 135-year-old company, which ran into financial troubles because of costs involved in servicing chain restaurants coupled with the expense of expanding to fulfill a contract to delivery dry food and produce to state hospitals and prisons.

As part of the process of getting its finances in line, the company withdrew from the state contract, reduced its truck fleet, shed some facilities and eliminated some jobs. Those steps weren’t pleasant but were needed in order for the overall company to survive.

Lee also benefited from $875,000 investments by Stephen Sheetz and Don Devorris, who will serve on the board of directors of the company along with Chief Executive Officer Robert Donaldson.

Lee Food Service still faces a tough road ahead. Growing a business, controlling costs, maintaining profitability, dealing with market changes and remaining competitive are challenges every company faces.

But emerging from bankruptcy shows the Lee Food Service at last is the road toward a more secure future.

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